Payments solution provider Oxigen is continuing to diversify from its core money transfer business and has partnered with Adarsh Credit Co-Operative Society. With this deal, Oxigen will deploy its micro-ATMs to Adarsh’s 100,000 credit advisors and become business correspondents (BC) for the company and offer financial services such as paperless bank account opening through eKYC, banking services via the AEPS cash-in/out, cashless Bharat Bill Payment services, and recharges.
The deal will see Oxigen’s retail network of 200,000 touch points becoming BCs for Adarsh Credit Co-operative society. The retailers will get access to the credit society’s products including fixed deposits, recurring deposits, share capital, and loans as well.
Meanwhile, wallet players such as MobiKwik are looking to offer loans as well. In August, Mobikwik sold 10.83% stake for Rs 225 crores (approximately $35.34 million at current rates) to Bajaj Finance, as a part of a strategic deal between the companies, that allows Mobikwik to bring in credit facilities to a wallet business.
Currently, Adarsh has 300,000 agents of which, 100,000 are active transacting advisors who service 18 lakh account holders as members. Members subscribe to Adarsh’s shares and put in deposits.
Move to other businesses
Oxigen’s deputy managing director Sunil Kulkarni said that wallets will have to adapt from pure digital plays. Traditionally, Oxigen has had an offline presence and operates a strong money transfer service through its wallet. But in recent times, the company has been expanding its offline-to-online (O2O) capabilities.
– In December 2016, it started an Indo-Nepal money remittance in partnership with the IME Nepal to help migrant Nepali workers. Nepali citizens residing in India, for employment, can send money through Oxigen’s 30,000 banking touch points.
– In November 2016, it partnered with e-commerce marketplace eBay India to give access to its network of 200,000 retail outlets. The company wants to bring an Online-to-Offline (O2O) solution where it will help with bringing a customer on eBay India and provide a mobile wallet solution.
– Retail conglomerate Future Group partnered with the company to handle its loyalty programme through a wallet called Future Pay. All loyalty points from Future Group will be stored on Future Pay. If a customer does not have enough loyalty points to complete the purchase, they can load additional funds through the Oxigen Wallet.